Paychex (NASDAQ:PAYX) Price Target Lowered to $123.00 at Morgan Stanley

Paychex (NASDAQ:PAYX) had its price objective reduced by Morgan Stanley from $133.00 to $123.00 in a research note published on Monday morning, Marketbeat Ratings reports. Morgan Stanley currently has an equal weight rating on the business services provider’s stock.

Several other equities analysts have also commented on the company. Weiss Ratings reissued a “hold (c)” rating on shares of Paychex in a report on Monday, December 15th. Jefferies Financial Group set a $110.00 price objective on Paychex in a report on Friday. UBS Group decreased their target price on Paychex from $140.00 to $132.00 and set a “neutral” rating for the company in a research note on Thursday, October 2nd. JPMorgan Chase & Co. lowered their price target on Paychex from $153.00 to $140.00 and set an “underweight” rating for the company in a report on Wednesday, October 1st. Finally, Citigroup lowered their target price on shares of Paychex from $139.00 to $120.00 and set a “neutral” rating for the company in a report on Monday. Fourteen investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Reduce” and an average price target of $127.00.

Paychex Stock Up 2.3%

PAYX stock opened at $114.88 on Monday. The company’s 50 day moving average price is $115.83 and its 200 day moving average price is $131.30. The firm has a market capitalization of $41.34 billion, a price-to-earnings ratio of 26.05 and a beta of 0.91. Paychex has a fifty-two week low of $108.00 and a fifty-two week high of $161.24. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.27 and a current ratio of 1.27.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The company had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.55 billion. During the same quarter in the previous year, the firm earned $1.14 earnings per share. The firm’s quarterly revenue was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. On average, equities research analysts anticipate that Paychex will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, November 26th. Shareholders of record on Friday, November 7th were given a dividend of $1.08 per share. This represents a $4.32 annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend was Friday, November 7th. Paychex’s dividend payout ratio (DPR) is presently 97.96%.

Institutional Investors Weigh In On Paychex

Several hedge funds have recently made changes to their positions in the business. Brighton Jones LLC grew its position in Paychex by 1.0% in the 2nd quarter. Brighton Jones LLC now owns 6,954 shares of the business services provider’s stock valued at $1,012,000 after buying an additional 71 shares during the last quarter. Sunflower Bank N.A. grew its holdings in Paychex by 3.4% during the second quarter. Sunflower Bank N.A. now owns 2,305 shares of the business services provider’s stock worth $335,000 after acquiring an additional 75 shares during the period. Empirical Finance LLC raised its position in Paychex by 0.7% in the second quarter. Empirical Finance LLC now owns 11,267 shares of the business services provider’s stock worth $1,639,000 after acquiring an additional 75 shares in the last quarter. Quantum Portfolio Management LLC lifted its holdings in Paychex by 3.1% in the second quarter. Quantum Portfolio Management LLC now owns 2,464 shares of the business services provider’s stock valued at $358,000 after acquiring an additional 75 shares during the period. Finally, GPS Wealth Strategies Group LLC boosted its position in shares of Paychex by 40.6% during the 2nd quarter. GPS Wealth Strategies Group LLC now owns 263 shares of the business services provider’s stock worth $38,000 after purchasing an additional 76 shares in the last quarter. Institutional investors and hedge funds own 83.47% of the company’s stock.

Trending Headlines about Paychex

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: Several post‑earnings price targets still imply modest upside from the current level, suggesting some analysts see limited recovery potential after the cuts. (Stephens: $125 PT; JPMorgan: $125 PT; Morgan Stanley: $123 PT). Stephens Lowers PT
• Neutral Sentiment: Zacks published a metrics‑focused review of Paychex’s Q2, highlighting how revenue and EPS compare with estimates and year‑ago results — useful context but not a clear buy/sell signal on its own. Zacks Q2 Analysis
• Neutral Sentiment: Jefferies reiterated a Hold on PAYX, which signals continued caution from at least one major shop but does not add fresh negative action. Jefferies Hold
• Negative Sentiment: Benzinga reports that analysts have slashed forecasts following Paychex’s Q2 results, indicating downward revisions to near‑term earnings expectations that can pressure the stock if guidance or client trends weaken further. Benzinga: Analysts Slash Forecasts
• Negative Sentiment: JPMorgan cut its price target to $125 and moved to an Underweight rating — a clear negative read from a large shop that may influence institutional flows. JPMorgan PT Cut (Benzinga)
• Negative Sentiment: Morgan Stanley trimmed its target to $123 and moved to Equal Weight, another downgrade that contributes to the overall negative analyst tone. Morgan Stanley PT Cut

About Paychex

Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.